Icahn Enterprises L.P. (IEP) vs Ultrapar Participacoes S.A. (UGP)

Icahn Enterprises L.P. and Ultrapar Participacoes S.A. are both Oil & Gas Refining & Marketing companies. Ultrapar Participacoes S.A. is the larger, with a market value of $8.2B against $4.7B — 1.7× the size. Icahn Enterprises L.P. has negative trailing earnings, so its P/E is not meaningful; Ultrapar Participacoes S.A. trades at 12.4×. Ultrapar Participacoes S.A. grew revenue faster over the last twelve months: 20.2% against 10.6%. Ultrapar Participacoes S.A. has the higher net margin (2.29% vs −4.86%) and the higher return on invested capital (15.3% vs 1.84%). Both pay a dividend; Icahn Enterprises L.P. yields more (30.2% vs 4.82%). Across the 21 metrics below, Ultrapar Participacoes S.A. leads on 15 and Icahn Enterprises L.P. on 6.

Valuation

Metric IEP UGP Oil & Gas Refining & Marketing median
P/E n/m 12.38 16.35
P/S 0.42 0.29 0.44
P/B 2.07 2.11 2.05
Price to free cash flow n/m 5.69 9.98
EV/EBITDA 8.60 5.48 8.04
EV/Sales 0.58 0.35 0.59
Earnings yield (11.16%) 8.08% 5.71%
Free cash flow yield (5.66%) 17.58% 9.13%

Profitability

Metric IEP UGP Oil & Gas Refining & Marketing median
Gross margin 14.49% 8.44% 12.22%
Operating margin 1.07% 4.95% 5.35%
Net margin (4.86%) 2.29% 2.08%
Free cash flow margin (2.37%) 5.52% 4.25%
Return on equity (18.50%) 18.40% 11.39%
Return on assets (3.71%) 7.25% 5.22%
Return on invested capital 1.84% 15.25% 11.54%

Growth

Metric IEP UGP Oil & Gas Refining & Marketing median
Revenue growth (TTM) 10.62% 20.23% 13.37%
EPS growth (last fiscal year) 44.68% (25.64%) 31.15%
Revenue growth, 5-year CAGR 9.54% 10.10% 12.77%
Net income growth, 5-year CAGR 0.00% 20.45% 0.00%

Health

Metric IEP UGP Oil & Gas Refining & Marketing median
Debt to equity 2.98 0.96 0.44
Current ratio 2.87 1.64 1.32
Net debt to EBITDA 1.12 2.02 2.07

Dividend

Metric IEP UGP Oil & Gas Refining & Marketing median
Dividend yield 30.17% 4.82% 1.71%
Payout ratio — 0.62 0.35

Size

Metric IEP UGP Oil & Gas Refining & Marketing median
Market cap 4.72b 8.18b 4.71b

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